Price Level LAS AS1 AD AS2 Real GDP Refer to the graph above to answer this question. If the economy was initially at point A, what would a movement to point B suggest? Select one: a. The movement could be the result of an increase in nominal wages O b. The movement could be the result of increased government spending O c. The movement could be the result of an increase in aggregate demand. O d. The movement could be the result of a decrease in the costs of production

Price Level LAS AS1 AD AS2 Real GDP Refer to the graph above to answer this question. If the economy was initially at point A, what would a movement to point B suggest? Select one: a. The movement could be the result of an increase in nominal wages O b. The movement could be the result of increased government spending O c. The movement could be the result of an increase in aggregate demand. O d. The movement could be the result of a decrease in the costs of production

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Since 1970, the United States has experienced 5 periods and 2 periods. O stagflationary, deflationary O inflationary; expansionary O recessionary; inflationary O recessionary; expansionary
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Price Level LAS AS1 AD AS2 Real GDP Refer to the graph above to answer this question. If the economy was initially at point A, what would a movement to point B suggest? O The movement could be the result of an increase in nominal wages. The movement could be the result of an increase in prices. The movement could be the result of an increase in aggregate demand. The movement could be the result of increased government spending. The movement could be the result of a decrease in the costs of production.
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D Question 36 Assume that an economy's actual output increased over a decade but it experienced deflation throughout that entire time. Which of the following statements is correct? o The country's nominal GDP increased, but nothing can be stated with certainty regarding any change in real GDP. o The country's real GDP increased, and its nominal GDP stayed the same. O The country's real GDP increased, but nothing can be stated with certainty regarding any change in nominal GDP. o The country's real GDP increased, and its nominal GDP decreased. o The country's nominal GDP decreased, but nothing can be stated with certainty regarding any change in real GDP. Question 37 Decreases in the costs of key inputs cause the AS curve to shift to the right. O True O False
The graph below shows the AD-AS diagram for the US. How big is the inflationary gap?
PRICE LEVEL a a" a" LRAS Y, Y₂ QUANTITY OF OUTPUT 8 a. rising price level and a falling level of output, as the economy moves to point A. b. falling price level and a falling level of output, as the economy moves to point C. c. falling price level and a rising level of output, as the economy moves to point A O d. rising price level and a rising level of output, as the economy moves to point C. SRAS, SRAS Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a AD
Question 35 Since 1970, the United States experienced stagflation O during all five recessionary periods. O during none of the five recessionary periods. O only during the most recent recessionary period. O only during the first two recessionary periods.
2. Briefly explain the relationship between equilibrium real GDP and the unemployment rate.
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Aggregate demand is the demand for the, of a country O a. Gross Domestic Product O b. Employment O C. Price level O d. None е. Firms